AU SETS OCTOBER 7 LAUNCH FOR AFRICA’S HOMEGROWN CREDIT RATING AGENCY

The African Union has announced that the African Credit Rating Agency (AfCRA) will be officially launched on October 7, 2026, in Port Louis, Mauritius, where the new institution is headquartered.

The launch is being positioned as an important step in Africa’s efforts to strengthen its financial independence and develop a credit assessment system that takes greater account of the continent’s economic realities. The African Union made the announcement on Wednesday through its official X account.

The continental body said the creation of AfCRA was driven partly by concerns that African countries have for years faced high borrowing costs because of what it considers unfavourable perceptions of risk attached to their economies.

According to the AU, the new agency is expected to provide context-driven credit assessments for African sovereign and corporate entities, offering an African perspective alongside the ratings provided by major international agencies such as Fitch Ratings, Moody’s Ratings and S&P Global Ratings.

The AU argued that Africa’s economic performance, resilience and growth prospects have not always been adequately reflected in assessments produced within the existing global financial system. It said AfCRA represents an effort by African countries to take a greater role in determining how their economies and institutions are evaluated.

The initiative has emerged amid long-standing concerns among African policymakers about the methodology and impact of international credit ratings. Countries including Ghana and Zambia have previously argued that credit downgrades can increase their borrowing costs and make existing debt challenges more difficult to manage.

AfCRA is expected to provide an alternative perspective to the established global rating institutions, which currently play a major role in determining how investors assess the creditworthiness of countries and companies.

The African Peer Review Mechanism has also previously criticised assessments issued by international rating agencies, including a dispute with Fitch over its downgrade of the African Export-Import Bank. Fitch, however, has defended its methodology, maintaining that its ratings are based on consistent and transparent global criteria.

The AU believes an Africa-focused institution can incorporate factors and circumstances that may receive less attention in conventional assessments of African economies. The agency is therefore expected to contribute to a broader understanding of the continent's financial position and investment potential.

The establishment of AfCRA has been in development for several years, with the agency originally expected to begin operations in September 2025. That timetable was subsequently delayed as work continued on ensuring that the institution could operate with sufficient credibility and independence.

In a move intended to protect its independence, AfCRA will not be owned by African governments, according to the report. The agency is also expected to concentrate primarily on local-currency debt instruments, giving it a specific focus within the continent's financial markets.

The African Union described the planned launch as more than the creation of another financial institution, saying it represents an attempt by African countries to build institutions capable of shaping their own economic narrative and exercising greater influence over their financial future.

The development also comes as African governments continue to seek ways to reduce the cost of accessing international capital. High interest rates, currency pressures and perceptions of elevated sovereign risk have contributed to expensive borrowing conditions for several countries across the continent.

Mauritius will serve as the headquarters of AfCRA, with Port Louis set to host the official launch ceremony on October 7.

The launch is expected to attract attention from African policymakers, investors and financial institutions as the continent considers how the new agency can influence perceptions of African creditworthiness.

The AU said AfCRA would contribute to efforts aimed at strengthening Africa's financial sovereignty and addressing what it described as an unfair risk premium that African countries have often faced in global capital markets.

The success of the new agency will ultimately depend on its ability to maintain independence, produce credible assessments and gain the confidence of investors and financial markets. Its October launch will therefore mark the beginning of a new phase in Africa's effort to have a greater say in how its economic and financial risks are assessed globally.